Editor's Note:
Shares of DV hit our bearish exit target this morning. Meanwhile POT was stopped out. We want to exit our FIO trade at the open tomorrow.

Current Portfolio:


BULLISH Play Updates

Cirrus Logic - CRUS - close: 28.72 change: +0.26

Stop Loss: 26.35
Target(s): 32.00
Current Gain/Loss: + 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/31 update: Traders were buying the dip near $28.00 today and CRUS eventually bounced higher. Shares managed to outperform the market with a +0.9% gain. If both CRUS and the market open positive tomorrow readers could use it as a new bullish entry point. More conservative traders may want to inch up their stop loss.

current Position: Long CRUS stock @ $28.35

- or -

Long Jul $30 call (CRUS1221G30) Entry $1.85

05/29/12 triggered @ 28.35

Entry on May 29 at $28.35
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on May 26, 2011


Market Leader, Inc. - LEDR - close: 4.50 change: +0.01

Stop Loss: 4.15
Target(s): 6.00
Current Gain/Loss: + 3.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/31 update: LEDR bounced off the $4.40 level and its 10-dma this morning and managed to tag a new relative high above $4.61 before paring its gains. I am not suggesting new positions at current levels.

Earlier Comments:
We'll try and limit our risk by keeping our position size small. FYI: The Point & Figure chart for LEDR is bullish with a $6.75 target. Remember, small positions. Don't go overboard just because the share price is low. I would consider this a higher-risk trade.

Current Position: Long LEDR stock @ $4.35

05/29/12 new stop loss @ 4.15
05/23/12 new stop loss @ 3.95
05/21/12 triggered at $4.35

Entry on May 21 at $4.35
Earnings Date 05/01/12
Average Daily Volume = 77 thousand
Listed on May 19, 2011


BEARISH Play Updates

Abercrombie & Fitch - ANF - close: 33.54 change: -0.35

Stop Loss: 36.25
Target(s): 30.25
Current Gain/Loss: - 1.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/31 update: ANF opened at $33.93 and then spiked down to $32.76 intraday before paring its losses. I would still consider new positions now or you could wait for a bounce back into the $34.50-35.00 zone as an entry point.

current Position: short ANF stock @ $33.93

- or -

Long Jul $30 PUT (ANF1221S30) Entry $1.05

Entry on May 31 at $33.93
Earnings Date 08/15/12 (unconfirmed)
Average Daily Volume = 3.9 million
Listed on May 30, 2011


American Railcar Ind. - ARII - close: 21.15 change: +0.34

Stop Loss: 22.75
Target(s): 20.05 or 18.55
Current Gain/Loss: + 4.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/31 update: I couldn't find any news to explain ARII's relative strength today (+1.6%). You'll notice that the bounce stalled near $21.00, which as previous support should be new resistance. I am not suggesting new positions at this time.

Earlier Comments:
We have two targets. Our conservative target is $20.05. Our aggressive target is $18.55. FYI: The Point & Figure chart for ARII is bearish with a long-term $14.00 target.

Suggested Position: short ARII stock @ $22.23

05/26/12 new stop loss @ 22.75
05/17/12 new stop loss @ 23.55

Entry on May 16 at $22.23
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 108 thousand
Listed on May 15, 2011


Ebix, Inc. - EBIX - close: 17.40 change: -0.13

Stop Loss: 18.35
Target(s): 16.15
Current Gain/Loss: + 2.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/31 update: EBIX slipped to another new relative low today. We are adjusting our stop loss down to $18.35. I am not suggesting new positions at this time.

Earlier Comments:
Our first target is $16.15. We want to keep our position size small to limit our risk because EBIX could see a short squeeze. The most recent data listed short interest at 29% of the small 34.6 million share float. Readers may want to use put options to limit risk instead of shorting the stock.
FYI: The Point & Figure chart for EBIX is bearish with a $12.00 target.

Current Position: short EBIX stock @ $17.90

- or -

Long JUN $18 PUT (EBIX1216R18) Entry $0.90

05/31/12 new stop loss @ 18.35
05/24/12 triggered @ 17.90

Entry on May 23 at $17.90
Earnings Date 08/07/12 (unconfirmed)
Average Daily Volume = 386 thousand
Listed on May 23, 2011


Fusion-io, Inc. - FIO - close: 20.88 change: +0.77

Stop Loss: 22.05
Target(s): 17.00
Current Gain/Loss: - 3.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/31 update: Shares of FIO have been way too volatile recently. The stock is up or down plus or minus 3% to 5% every day. The stock was showing too much relative strength today as well. I am suggesting we exit positions at the open tomorrow morning.

Earlier Comments:
This is a higher-risk, aggressive trade. We want to keep our position size small because there has been some M&A rumors with FIO as a takeover target. Traders may want to limit their risk by using put options. FYI: The Point & Figure chart for FIO is bearish with a $16.00 target.

(small positions)

Suggested Position: short FIO stock @ $20.09

- or -

Long Jun $17.50 PUT (FIO1216R17.5) Entry $0.85

05/31/12 prepare to exit early at the open tomorrow

Entry on May 18 at $20.09
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on May 17, 2011


Foster Wheeler AG - FWLT - close: 17.89 change: -0.27

Stop Loss: 19.75
Target(s): 17.25
Current Gain/Loss: + 8.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/31 update: FWLT plunged to 17.40 this morning and spent the rest of the session climbing back toward the $18 level. Readers may want to start taking profits now and/or lowering their stop loss. Our exit target is $17.25. I am not suggesting new positions at this time.

current Position: short FWLT stock @ $19.53

- or -

Long Jun $20 PUT (FWLT1216R20) Entry $1.40

05/26/12 new stop loss @ 19.75
05/22/12 new stop loss @ 20.35

Entry on May 17 at $19.53
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on May 16, 2011


Hospira Inc. - HSP - close: 31.26 change: -0.66

Stop Loss: 32.35
Target(s): 30.25
Current Gain/Loss: + 5.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/31 update: HSP has broken down to new relative lows. Furthermore the stock did not see that much of a bounce this afternoon. The stock looks poised to accelerate lower. We are adjusting our stop loss down to $32.35. I am not suggesting new positions at this time.

FYI: Readers should note that HSP does have above average short interest. The most recent data listed short interest at 7.8% of the 165 million share float.

current Position: short HSP stock @ $32.95

- or -

Long Jun $30 PUT (HSP1216R30) Entry $0.35

05/31/12 new stop loss @ 32.35
05/23/12 new stop loss @ 33.55
05/14/12 opened on the gap down at $32.95, trigger was 33.20

Entry on May 14 at $32.95
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on May 9, 2011


Netgear Inc. - NTGR - close: 31.39 change: +0.66

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: - 5.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/31 update: The situation does not bode well for our bearish NTGR trade. This stock is showing too much relative strength. Shares closed near their 10-dma this afternoon. The intraday high was $31.53 while we have a stop at $31.55. If there is any follow through tomorrow we will most likely get stopped out. I am not suggesting new positions at this time.

current Position: short NTGR stock @ $29.75

- or -

Long Jun $30 PUT (NTGR1216R30) Entry $1.70

05/25/12 triggered @ 29.75

Entry on May 25 at $29.75
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 549 thousand
Listed on May 24, 2011


Silicon Motion Tech. - SIMO - close: 13.54 change: -0.25

Stop Loss: 14.15
Target(s): 10.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/31 update: SIMO is still drifting lower. We are waiting for a breakdown under support. Currently the plan is to launch bearish positions if SIMO hits $12.85.

Trigger @ 12.85

Suggested Position: short SIMO stock @ (trigger)

- or -

buy the Jun $15 PUT (SIMO1216R15)

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 819 thousand
Listed on May 26, 2011


Teva Pharmaceuticals - TEVA - close: 39.19 change: -0.01

Stop Loss: 40.05
Target(s): 35.25
Current Gain/Loss: - 3.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/31 update: TEVA spiked higher this morning but gains faded and the stock eventually closed virtually unchanged on the session. I remain cautious here and we're not suggesting new positions.

I checked two different quote feeds and both of them listed the intraday high at $39.91. Yet if I look at my intraday charts TEVA appeared to trade over the $40.00 mark several times this morning.

current Position: short TEVA stock @ $37.81

- or -

Long Jun $37.50 PUT (TEVA1216R37.5) Entry $0.95

05/30/12 trade opened with TEVA gapping down at $37.81

Entry on May 30 at $37.81
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on May 29, 2011


Marriott Vacations Worldwide - VAC - close: 28.30 change: -0.37

Stop Loss: 29.25
Target(s): 25.25
Current Gain/Loss: - 0.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/31 update: VAC is still churning between short-term support near $27.60 and overhead resistance near $29.00. I remain cautious here and would wait for a new drop under $27.60 before considering new bearish positions.

(small positions)

current Position: short VAC stock @ $28.10

05/26/12 new stop loss @ 29.25

Entry on May 25 at $28.10
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 495 thousand
Listed on May 24, 2011


CLOSED BULLISH PLAYS

Potash Corp. - POT - close: 39.53 change: +0.11

Stop Loss: 38.90
Target(s): the 50-dma
Current Gain/Loss: - 3.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/31 update: Thursday proved to be a bit of a volatile day for shares of POT. The stock spiked down to $38.60 intraday before bouncing back and actually closing in positive territory. Unfortunately our stop loss was hit at $38.90.

Earlier Comments:
POT can be a volatile stock so I am suggesting we keep our position size small.

(small positions)

closed Position: Long POT stock @ $40.30 exit $38.90 (-3.4%)

- or -

JUN $40 call (POT1216F40) Entry $1.36 exit $0.72 (-47.0%)

05/31/12 stopped out at $38.90
05/29/12 triggered @ 40.30

chart:

Entry on May 29 at $40.30
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 5.4 million
Listed on May 24, 2011


CLOSED BEARISH PLAYS

DeVry Inc. - DV - close: 27.33 change: -0.18

Stop Loss: 29.05
Target(s): 26.75
Current Gain/Loss: + 9.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/31 update: Target achieved.

The market's widespread decline this morning helped push DV to an intraday low of $26.50. Our exit target was hit at $26.75.

closed Position: short DV stock @ $29.62 exit $26.75 (+9.7%)

- or -

Jun $30 PUT (DV1216R30) Entry $1.35 exit $3.25*(+140.7%)

*exit price on the option is an estimate. the option did not trade at the time of our exit!
05/31/12 target hit at $26.75
05/26/12 new stop loss @ 29.05
05/24/12 adjusting exit target to $26.75
05/17/12 new stop loss @ 30.35

chart:

Entry on May 14 at $29.62
Earnings Date 08/09/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on May 12, 2011